Dhaka – Bangladesh has secured a commitment of $2.1 billion in Chinese investments, loans and grants from the Chinese government and its companies during the visit of Chief Adviser Muhammad Yunus to China, officials said.
Bangladeshi officials and Chinese ambassador to Dhaka Yao Wen said nearly 30 Chinese companies have pledged to invest 1 billion dollars in the exclusive Chinese Industrial Economic Zone after the Chief Adviser urged private enterprises to invest in Bangladesh’s manufacturing sector.
China has also planned to lend some $400 million in the Mongla port modernisation project, some $350 million in the development of the China Industrial Economic Zone and another $150 million as technical assistance.
The rest of the amount would come as grants and other forms of lending, according to a press release issued by the Chief Adviser’s press wing.
“It is a milestone visit,” Chinese envoy Yao Wen said, referring to the Chief Adviser’s four-day-long first bilateral tour to China.
While addressing an event with Chinese business leaders, Yunus on Friday invited the Chinese business to be part of “new Bangladesh” and its transformation, engaging extensively in terms of doing business for mutual benefit.
“Bangladesh is the hub [for doing business]…a production hub for the entire region. Set up your factories in Bangladesh and sell your products to the whole world,” he was quoted as saying by his press officer.
Yunus said, Bangladesh is the second largest apparel manufacturer after China. Bangladesh is located in an amazing location which is very potential for regional trade and business.
Ashik Chowdhury, the Executive Chairman of the Bangladesh Investment Development Authority and Bangladesh Economic Zone Authority, said the visit could propel a ‘surge’ of Chinese investment to Bangladesh.
During the bilateral meeting, Yunus has requested President Xi Jinping to give his green signal to Chinese private companies to invest in Bangladesh.
President Xi affirmed that he would encourage Chinese firms to relocate their manufacturing plants to Bangladesh as they look to diversify their production destination, said Chowdhury.
“This visit will play a big part in persuading many Chinese companies to invest in Bangladesh. It is just a matter of time,” he said.
On Friday, Yunus and Ashik Chowdhury briefed officials of more than 100 Chinese companies, including some of the biggest in the world, to invest in manufacturing in Bangladesh, especially in advanced textiles, pharmaceuticals, light engineering and renewables.
“So far, the response is very positive,” he said.